HC Deb 20 February 1973 vol 851 cc222-3
Q1. Mr. Norman Lamont

asked the Prime Minister what plans he has for a meeting with the Prime Minister of Japan.

The Prime Minister (Mr. Edward Heath)

Mr. Tanaka has accepted an invitation to visit the United Kingdom this year. No date has yet been fixed.

Mr. Lamont

As the Japanese balance of payments surplus is one of the main causes of the recent international monetary crisis, may I ask my right hon. Friend to impress upon the Japanese Government that the revaluation of the yen will not necessarily be enough to restore stability to the situation, that it remains highly desirable that import restrictions should be liberalised, that the Japanese export control programme should continue and that it is time Japanese promises were matched by action?

The Prime Minister

As the yen is at present floating it is difficult to say at which point it will finally be repegged. Part of the arrangement was that the dollar should be devalued and that the yen should float. I agree with my hon. Friend on the second part of his supplementary question, and I impressed this on Mr. Tanaka when I saw him in Tokyo last September. It is equally important that the whole system of selling in Japan should be opened up to others. Our exporters find great difficulty in getting capital into Japan to establish any form of selling institution and thus get their proper share of the Japanese market.

Mr. Maclennan

Regarding export control, will the Prime Minister undertake to approach Mr. Tanaka when he is in this country about the flagrant violation of sanctions in Rhodesia by Japanese salesmen? Will he bring this point urgently to the attention of the Japanese?

The Prime Minister

I will certainly consider what the hon. Gentleman has said. However, as he knows, responsibility for the implementation of the sanctions regulations rests with the United Nations.

Sir D. Renton

Would it not help the Japanese to overcome some of their balance of payments surplus difficulties if they increased the amounts that they give to Far East ex-prisoners of war?

The Prime Minister

That is a separate question. If I recollect—I should have to check this matter—I believe that there was an original settlement which was very helpful. But, diverting from that, if there were more Japanese investment in developing countries that also would help.